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The thought process here is that if you're stuck holding tether if/when it collapses, you can just sell for a crypto that hasn't collapsed. But who in their right minds would want to trade something of value for something that has just been shown to be worth $0?

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For exchanges that use USDT, exchanging for crypto is your only immediate option.

Right, but who would want to be on the other side of that trade? You're telling me that if I have something worth $0 and you have something of value, you'd want to make that trade with me?

Exactly, thats what causes a squeeze/absurd drive up in price. Its why I dont hold tether.

Are you thinking of something like a short squeeze? That only happens because shorts would be forced to buy shares to cover their positions. I don't see how that would apply here. Who's forced to buy people's tether if the price goes to zero? In reality, everyone who holds tether would just be screwed. Their imaginary token would be worth nothing and they wouldn't be able to exchange them for anything. The value would just disappear in to the air

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